Report: The Real Price of Gasoline (.pdf)
Together, these external costs total $558.7 billion to
$1.69 trillion per year, which, when added to the retail
price of gasoline, results in a per gallon price of $5.60
to $15.14.
This report by the International Center for
Technology Assessment (CTA) identifies and
quantifies the many external costs of using motor
vehicles and the internal combustion engine that are not
reflected in the retail price Americans pay for gasoline.
These are costs that consumers pay indirectly by way
of increased taxes, insurance costs, and retail prices in
other sectors. The report divides the external costs of gasoline
usage into five primary areas: (1) Tax Subsidization of
the Oil Industry; (2) Government Program Subsidies;
(3) Protection Costs Involved in Oil Shipment and
Motor Vehicle Services; (4) Environmental, Health,
and Social Costs of Gasoline Usage; and (5) Other
Important Externalities of Motor Vehicle Use.
Together, these external costs total $558.7 billion to
$1.69 trillion per year, which, when added to the retail
price of gasoline, results in a per gallon price of $5.60
to $15.14.
1 response so far ↓
JK // July 6, 2007 at 6:10 pm
It is funny how the oil industry and their lobbyist never want to talk about this subsidy. I don’t know if this study takes into account the Iraq war and other similar costs of the military that support our addiction, or the costs of fighting terrorism because we as Americans fund the funders of terrorism. But the real cost of our oil addiction is quite high and we as a country ignore it because we don’t want to deal with it.
I am glad to see this getting attention because we will be dealing with it all too soon.
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